FalconX Seeks Regulatory Clarity for Single-Stock Perpetuals

FalconX Bravo has submitted a proposal to the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to treat cash-settled perpetuals tied to a single security or narrow-based security index as security-based swaps under SEC rules.

The firm wants these contracts, including those offered through decentralized finance (DeFi) protocols, to be subject to the same regulations as traditional swap dealers.

FalconX Bravo's proposal does not extend to Bitcoin perpetuals or crypto perpetuals in general. The firm emphasizes that its definition covers only specified perpetuals and options on them.